Midwest CBOB Mixed as Pipeline Markets Lead Gains


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- CBOB spot basis diverged across the Midwest on Tuesday 
(9/8), with regional pipelines leading the gains as traders adjusted cash 
values selectively over concerns of a supply squeeze and in alignment with 
rallying gasoline futures.

   The Buckeye Complex and Wolverine pipelines both traded at parity with the 
October NYMEX RBOB contract, narrowing their discounts by 35cts and 3.5cts 
gallon respectively.

   The discount for Chicago CBOB narrowed by 4.5cts as it traded at 3.5cts 
gallon below the futures benchmark.

   Group 3 CBOB, however, saw its premium slip by 3cts to 15cts over the 
October RBOB contract.

   The varying moves in Midwest cash gasoline came as the October contract 
added $0.0376, or 1.17%, in NYMEX trading to settle at $3.2525 gallon.

   Midwest fuel markets have been navigating supply uncertainty since an August 
17 fire at Explorer Pipeline's Glenpool tank farm in Tulsa, Oklahoma.  With no 
firm timeline for restoring full northbound shipments along the 1,830-mile 
system, regional fuel traders have been relying heavily on benchmark futures 
for price direction.




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